The company is the only listing platform of Xingtai Holdings, a wholly state-owned enterprise in Hefei. According to the state-owned assets planning of Hefei, Hefei will integrate into three major state-owned capital operation groups to optimize the layout of state-owned assets. Xingtai Holdings is a key local financial holding platform. A number of financial institutions and shareholding companies of Xingtai Holdings may provide a full range of financial support for the company, so as to help the company invigorate existing project resources and further expand profitability.

The company's projects are mainly located in Hefei, Anhui Province, and are also distributed in key areas such as Bengbu. In 2016, the real estate market in Hefei heated up sharply, the sales area increased significantly, and housing prices continued to rise. The company's construction and sale projects are located in 6 projects in various districts of Hefei and 5 projects in other cities, with a total project area of more than 2.7 million square meters. Among the company's key projects, Amber Manor and Amber Mingdu projects are located in Feidong area, and the prices of major real estate projects in Feidong region increased by about 30% in the first half of 2016.

Profit forecast: performance improved significantly in the first quarter of 2016 due to the increase in settable area. The operating income was 714 million yuan and the net profit was 70.9908 million yuan, with year-on-year growth rates of 279.61% and 1853.87% respectively. In 2016, the company will have Amber five Ring City, Amber City and other three projects will be settled one after another, which will form a strong support for the performance. It is estimated that the company's EPS from 2016 to 2018 will be 0.55,0.66 and 0.81 yuan respectively, giving the "overweight" rating for the first time.

Risk tips: 1) the risk of sales in the real estate market falling short of expectations; 2) the risk of real estate-related policy changes.